Over the past few years, new vehicle pricing has soared to new record levels – where it remains, stubbornly, to this day – all while interest rates are also high, resulting in lofty monthly payments for a lot of folks. A record percentage of those monthly loan payments exceed the $1,000 limit these days as well, which is territory once reserved for mortgages, in fact. As such, it isn’t terribly surmising to see auto loan providers approving fewer customers with lower credit scores than they have in recent history.
According to new data from Cox Automotive and its Dealertrack Credit Availability Index, consumers faced more stringent access to credit in April 2025, and that’s particularly true of folks that have less than perfect credit. The share of subprime loans decreased by 280 basis points versus March, an indication that lenders are being more cautious when it comes to extending credit to borrowers who are classified as high-risk.
However, at the same time, the overall auto loan approval rate increased by 20 basis points in April, reflecting a more favorable lending environment in general, as higher approval rates are typically attributed to lender confidence in economic outlook and consumers’ ability to repay loans. Regardless, it’s clear that lenders are taking a more cautious approach when it comes to higher-risk borrowers, which makes sense given the steady state of inflation and the fact that borrowers are also gravitating toward longer-term loans in an effort to lower monthly payments.
According to this same report, the share of auto loans with terms longer than 72 months increased by 130 basis points in April, in fact. As Ford Authority previously reported, 19.8 percent of new car buyers opted for an 84-month loan in Q1 2025, which is a new record high, as well as a significant jump from 13.4 percent in Q1 2019. Meanwhile, 60-75 month loans accounted for 67.4 percent of all new vehicle financing over the first quarter, down from 68.9 percent in Q1 2024, while 48 month or less terms made up 10.2 percent of loans over the same time period – down from 11.9 percent in Q1 2024.
Plus, the employee pricing program remains available nationwide.
Helping to ensure one can gain access to the vehicle.
That special benefit ended in mid-2022.
Perhaps the nicest one left.
The company promises that it's a huge improvement over the existing system.
The same engine already present in the Mustang and Explorer.
